Things to consider:

1. Target audience: who are they? what are they interested in? why would they be interested in your product?
2. Current market situation: what is everybody else offering and for what target audience?
3. Your product: where’s the opportunity for it? What is its unique selling point as compared to similar existing products?


Defining a niche:

1. Is anybody offering anything in the same niche?
2. Is anybody offering the same product for the same target audience?
3. What makes the niche unique?
4. What makes the niche potentially profitable?
5. Is my niche too wide?
6. Is my niche too narrow?
– If the niche is untapped, what could be the reason nobody is offering anything in it?


Analyzing the market:

1. What is the approach used by the existing product providers?
2. What is the price range for the existing products?
3. What is the estimated demand?
4. Does the market rely largely on paid advertising, partner relationships or organic SERPs?


Your product should have a future:

1. Develop the initial offer – what is the best angle to start with? By starting with an offer that is too wide, it will be difficult to cut down your losses if your product fails.
2. Develop a few possible scenarios for your product’s further development: what will happen if the initial offer is successful, what will happen if it is not as successful as you hoped it to be, what will happen if it got no customer response at all
3. Make a development plan for your product for the next 6 months, next year, etc.


Defining a possible new product opportunity:

1. Identify an existing problem
2. See if any solutions to it currently exist
3. If there are solutions, see what the drawbacks of these solutions are
4. Think of a (better) way to solve the problem
5. Testing the potential interest in your solution: before developing the product itself, write an e-book describing the problem and possible solution without giving away too much, offer it for free to those who sign up at your site (e.g. through PPC) – if the rate of sign ups and your e-book downloads is high so is the potential for your solution.